RETENTION/EXPANSION: Medline ReNewal

RETENTION/EXPANSION: Medline ReNewal

Partnering for the Future

Company

From startup to expansion to acquisition, Medline ReNewal is an economic development success story. Founded in Sisters as Medisiss in 1997, the company launched with the revolutionary idea of transforming single use medical devices into renewable assets. Four years later, Medisiss relocated to Redmond to expand and over a decade became one of the city’s most successful manufacturers. By 2012, its reputation in the healthcare industry attracted the interest of Medline, the largest privately held manufacturer and distributor of medical supplies. The company was acquired in 2012 and became Medline ReNewal.

Shortly after acquisition, Medline ReNewal shifted the company’s original focus on surgery centers to larger hospital groups and acute care facilities where market demand for medical device reprocessing was rapidly increasing. In three short years, Medline more than doubled its production output. This success also created a problem - the company was running out of room to process, store, and ship its products.

The Challenge

Considering its growth trajectory, Medline needed a long term solution, and fast. Running its operations in 28,000 square feet of multiple leased commercial buildings was becoming unsustainable. “We were sending product to on-site storage containers, covering it with tarps in the parking lot, stacking it down the halls,” says Steve Bettis, VP of ReNewal Operations. “The lack of space was starting to impact product flow and decrease efficiencies.”

Jon Stark at REDI had been working with both Bettis and company president Frank Czajka from the time of acquisition. He knew Czajka wanted to keep operations in Redmond, and that he had been deeply impressed by the dedication and skills of the employees and their love for the region. However, without an available facility for expansion, Czajka was having to consider relocation. For REDI, the focus had swiftly gone from helping the company expand to making sure it would stay.

The Solution

While other states were competing with incentives and offers, REDI understood that incentives were only part of the solution for Medline. As a fourth generation, family-owned company, Medline holds a long-term view of growth and investment with a strong commitment to community engagement and social responsibility. Above all, the company wanted to make sure that Redmond was a serious partner committed to supporting decades of its growth.

Spearheaded by Stark, REDI launched into action aligning city leadership, state government and local support. From incentives to land sites, Stark and his team worked alongside Medline to develop a plan. After months of collaboration, the company purchased 12 acres in Desert Rise Industrial Park. In July 2017, it finished construction of a 50,000 square foot custom designed facility on three of those acres. Medline also put its community values into practice by investing back into the local economy. Of the $12 million invested in the new building, 95% of the dollars were directly reinvested back into contracts with Central Oregon builders and contractors. Presently operating at 40% capacity in its new facility, the company employs nearly 200 employees with plans for ongoing future expansion.

“REDI was absolutely key to this project. As a company, we believe in long-term strategic growth. That means if we’re going to invest in building facilities and expanding our operations, we want to make sure we’re doing it in a community that is engaged and supportive. Jon and his team showed us they were serious about those values by creating a solution for lasting success.”